CITY TOBACCO MART Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) IN respect of the assessment for the two years 1952-53 and 1953-54, the claim was made by the concern called by City Tobacco Mart, that it was a partnership entitled to registration under section 26A of the INdian INcome-tax Act, 1922. According to the case, the partnership which was constituted by a written instrument was to consist of five partners, namely :

(2.) OUT of these, number 2 is the wife of number one, and number 3, the son of number one. Number 4 and 5 were employees under number one. The capital was to be contributed only by the first two in the sum of Rs. 6,00,000 by the former and Rs. 55,500 by the latter.

(3.) BOTH the assessee and the department were dissatisfied with this order and both of them went on appeal to the Appellate Tribunal, before which the department succeeded. The Tribunal came to the conclusion that there was no genuine partnership at all deserving of registration or capable of being registered under section 26A of the Act.